Online furniture seller Wayfair Inc has revealed it will cut 870 jobs worldwide, or five percent of its total staff, in order to reduce operational costs and realign investment priorities.
The company announced a larger-than-anticipated second-quarter loss earlier this month.
It has been hit by rising supply chain costs and a drop in furniture demand following historic highs.
In premarket trade, firm shares were down approximately eight percent.
Expenditures were estimated by Wayfair to be in the $30 million to $40 million range, largely because of employee severance and benefit costs.
All of these costs are anticipated to be substantially in the third quarter of 2022, the company said.
Furniture and other household goods saw a surge in sales during the COVID-19 lockdowns as individuals sought refuge in their homes.
Wintermantel said: “I think the home furnishing markets even compared to pre-pandemic is still good, because we are spending a lot more time at home.
“We’re continuing to update or upgrade home but it’s certainly down versus where we were in the last two years.”
What is Wayfair?
Wayfair is an e-commerce company that sells home furnishings, decor, home improvement and houseware.
Where it is headquartered? The company is headquartered in Boston, Massachusetts.
How many staff does it have? Wayfair has 16,681 employees
What is its annual revenue? The annual revenue is $13 Billion.